Section 179 and Federal EV Rebate stackable?

[momo3605]

Hey guys,
Does anyone know if section 179 tax deduction and the federal EV rebate are stackable?

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[SANZC02]

Hey guys,
Does anyone know if section 179 tax deduction and the federal EV rebate are stackable?

You probably need to talk to your accountant. Not sure you can deduct a Rivian. I think there is a 6000 lb gross weight limit for it to qualify a vehicle for a 179 tax deduction.

If it is mixed use business/personal the business use has to be more than 50% and you can only deduct that percentage of the purchase. Based on that I would think you would need to deduct the tax credit from the price before taking the deduction as well.

 

[momo3605]

You probably need to talk to your accountant. Not sure you can deduct a Rivian. I think there is a 6000 lb gross weight limit for it to qualify a vehicle for a 179 tax deduction.

If it is mixed use business/personal the business use has to be more than 50% and you can only deduct that percentage of the purchase. Based on that I would think you would need to deduct the tax credit from the price before taking the deduction as well.

It

i believe it would qualify for section 179 at least. The minimum is 6000lbs gross. Rivian R1T is way beyond that

 

[drstancpa]

You can't double dip on the $7500 portion...if you claim the $7500 credit, you'll have to reduce your basis by $7500, regardless of how you're recovering the cost (179, bonus, MACRS, whatever). And of course only the business portion of the cost is recoverable.

Since the Rivian R1T is over the 3 ton threshold and the bed is less than 6' long, the luxury car depreciation caps do not apply, and you can expense up to $27,000 under Sec 179 in 2022.

BUT...through 2022, bonus depreciation is still at 100%, and since the R1T doesn't fall under the luxury car depreciation caps, So long as you're eligible for bonus depreciation, this route will generate a higher first year deduction than Sec 179.

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